menuIcon
$ 87,333.4
BTC
$ 87,333.4
3.53 %
$ 1,628.16
ETH
$ 1,628.16
3.31 %
$ 0.6423
ADA
$ 0.6423
4.23 %
$ 601.72
BNB
$ 601.72
1.79 %
$ 138.89
SOL
$ 138.89
1.38 %
Sujit Kumar
Jul 4, 2024
by Sujit Kumar

Bitcoin Drops Below $60K Sparking 'Buy the Dip' Sentiment Among Traders

buy the dip sentiment

Table of contents

  1. Current Market Status
  2. Impact of Mt. Gox
  3. Market Sentiment and ETF Inflows
  4. Analysts' Perspectives
Mentions of “buy the dip” have surged across social platforms like Reddit, X, 4chan, and Bitcoin Talk as Bitcoin's price dipped below $60,000 for the second time in four months. According to crypto research firm Santiment, these mentions doubled over the past two days as traders debated the current stage of the bull market. Santiment noted that the crowd’s enthusiasm may indicate it’s wise to wait for their excitement to settle before making purchases.

Current Market Status

Bitcoin is currently trading at $58,900, reflecting a 4.2% drop in the last 24 hours, its lowest since May 3, according to CoinGecko data. Ethereum also experienced a decline, dropping to $3,100 in the same period. This market fluctuation has led many traders to view the dip as a buying opportunity, although some experts advise caution.

Impact of Mt. Gox

Tom Lee, founder of Fundstrat, attributed some of the recent negative sentiment to the impending offload of $9 billion worth of Bitcoin by Mt. Gox to its creditors. The concern is that if a significant portion of these creditors sell their recovered Bitcoin, it could further depress prices. Despite this, Lee maintains his optimistic forecast that Bitcoin could reach $150,000 by the end of 2024.

Market Sentiment and ETF Inflows

The Crypto Fear and Greed Index, which gauges market sentiment, currently sits in the “Fear” zone with a score of 44 out of 100. This index hit an 18-month low of 31 on June 25 and has been fluctuating between 30 and 53 since. Additionally, spot Bitcoin ETFs have seen inflows on only six of the last 18 trading days, contributing to the mixed market sentiment.

Analysts' Perspectives

Kudret Ayyldr, Research Manager at GCM Investment, expressed concerns over Bitcoin's inability to maintain levels above $67,500 since April. Ayyldr suggested this could lead to a correction to the $48,000-$50,000 range. This cautious outlook aligns with the broader sentiment of fear currently prevailing in the market.

In summary, while the dip has prompted a wave of buying enthusiasm, experts recommend a careful approach, suggesting that the best time to buy may be when the market sentiment is less optimistic.

Follow us on: News
Buy The Dip Bitcoin Drops Below $60K
Bitcoin Drops Below $60K Sparking 'Buy the Dip' Sentiment Among Traders
Sujit Kumar
Sujit received his Bachelors in Science from the LNMU Darbhanga. He is currently working as a Content Strategist. He has more than three years of professional experience in information systems, security policies, technologies, and Cryptocurrency. He has published 6 books in the area of information security and assurance. He has published more than 50 research articles in leading journals Regarding the Latest and Breaking Crypto News and updates. His research interests include access control, computer forensics, Digital Marketing, Web development, business hacks, player experience, and virtual storytelling.

Top Picks